Garanti BBVA Completes USD 125 Million Sustainable Subordinated Bond Issuance
Garanti BBVA Completes USD 125 Million Sustainable Subordinated Bond Issuance
Garanti BBVA has completed a USD 125 million sustainable subordinated bond issuance with an IFC and DEG consortium. The proceeds from the transaction will support the Bank’s capital structure while being directed toward green investments by micro-enterprises and SMEs and improving women entrepreneurs’ access to finance.
Garanti BBVA has completed the issuance of a USD 125 million, 10-year sustainable subordinated bond (Tier II) with a call option exercisable from the fifth year, carried out with an IFC and DEG consortium. The transaction holds an important place among the Bank’s strategic partnerships with international financial institutions. The subordinated bond issuance, carried out after many years, represents a different financing model within the Bank’s activities in this area.
The proceeds from the transaction will support the Bank’s capital structure. The funds are planned to be directed toward green and social investments within the scope of sustainable finance.
Under green finance, financing will be provided for electric vehicles, energy-efficient equipment and technologies, and other eligible green investments by micro-enterprises and SMEs. This will support the development of financing opportunities for businesses’ green transition investments.
Under social finance, the transaction will support women-owned SME entrepreneurs’ access to finance.
Atıl Özus, Deputy General Manager in charge of Finance and Treasury at Garanti BBVA, commented on the transaction: “We consider our longstanding partnerships with international financial institutions important not only for strengthening our Bank’s funding structure, but also for developing new financing models that respond to the needs of the real economy. The USD 125 million sustainable subordinated bond issuance we have completed with an IFC and DEG consortium is also an important step in this direction. By supporting our regulatory capital base we continue to diversify our relationships with international institutions and our capital funding channels. Going forward, we will continue to work on new financing opportunities through partnerships with different investors and financial institutions that support our Bank’s strong financial structure and respond to the evolving needs of our customers.”
Sinem Edige, Deputy General Manager at Garanti BBVA, emphasizing that the transaction represents an important step in Garanti BBVA’s sustainability efforts, said: “We see sustainable finance as one of the key elements of our long-term strategy that contributes to financing the economic transition. In this direction, we will use the funding provided through this transaction to support the green transition investments of micro-enterprises and SMEs and access to finance for women entrepreneurs. For us, sustainability is not limited to specific products and financing solutions; it is a holistic approach through which we accompany our customers in their transformation journeys by understanding their transformation needs and providing financing, advisory services and innovative solutions. At a time when we are participating as the Global Banking Partner at COP31 together with the BBVA, we are pleased to add this new and very important step to our sustainability efforts through this financing. Going forward, we will continue to develop solutions that support our customers’ transition investments and contribute to sustainability having a tangible impact on the real economy.”
Momina Aijazuddin, Director of Financial Institutions Group for Middle East, Central Asia & Turkiye at IFC, comments: “This investment builds on IFC’s longstanding and impactful partnership with Garanti BBVA and reflects our shared commitment to sustainable and inclusive growth in Türkiye. By strengthening Garanti BBVA’s capacity to finance micro, small, and medium enterprises, we are helping expand opportunities for women entrepreneurs while supporting businesses investing in energy transition. Together, we are helping businesses grow more sustainably, strengthen competitiveness, and contribute to Türkiye’s energy transition.”
Gudrun Busch, Senior Director Financial Institutions and Capital Markets at DEG, comments: “We are delighted to partner with IFC in supporting Garanti BBVA’s sustainable finance ambitions in Türkiye. Our joint investment strengthens the Bank’s capitalization and supports financing for green MSME-projects and women entrepreneurs. This collaboration is advancing a more inclusive and resilient economy, contributing to Türkiye’s transition to a low-carbon future while generating lasting social and environmental value.”